Alberta Court of Appeal: Upholds Estate Representative Removal, Repayment Order

The Alberta Court of Appeal recently upheld orders requiring a daughter to repay unaccounted-for funds to her mother's estate and removed her and her husband as personal representatives, while setting aside an inheritance deduction, in a case stemming from a 2021 death. In *Silva Estate (Re), 2026 ABCA 325*, the Court of Appeal affirmed the chambers judge's jurisdiction to order restitution and remove the personal representatives, but crucially determined that the judge could not pre-emptively deduct $518,595 from the daughter's inheritance before the validity of the deceased's will had been definitively resolved. The dispute originated after the deceased moved to Alberta in 2020, executed a new will, and appointed one daughter as both personal representative and attorney under an enduring power of attorney. Following the mother's passing in December 2021, another daughter initiated proceedings, seeking a comprehensive accounting, restrictions on the appellant daughter's authority, and the repayment of improperly distributed estate assets, concurrently challenging the will's validity. The chambers judge had previously found that the appellant failed to properly account for funds managed under the power of attorney, ordering repayment of an unproven $506,000 gift, US$500,693 transferred from Costa Rican property, and $59,025 in unexplained registered retirement income fund withdrawals. The Court of Appeal rejected the appellant's argument that the chambers judge lacked jurisdiction for restitution, citing the broad discretion granted to courts under section 10(4) of Alberta's *Powers of Attorney Act* in accounting applications.

This ruling carries significant legal implications for practitioners, fiduciaries, and beneficiaries within Alberta's estate administration landscape. It unequivocally reinforces the stringent accountability standards expected of personal representatives and attorneys acting under enduring powers of attorney, underscoring the courts' willingness to intervene decisively when fiduciary duties are breached or accounting is deficient. The decision also provides critical clarification regarding the jurisdictional limits of chambers judges in estate matters, particularly emphasizing that substantive determinations affecting inheritance, such as offsets, cannot be made prematurely when the foundational validity of a will remains contested. This procedural nuance is vital for ensuring due process and preventing piecemeal litigation, highlighting the importance of resolving fundamental testamentary issues before addressing consequential financial adjustments. The Court of Appeal's affirmation of broad judicial discretion under the *Powers of Attorney Act* further empowers courts to ensure proper management and restitution of assets.

The legal context for this matter is rooted in Alberta's provincial statutes governing estates and powers of attorney, with the Alberta Court of Appeal sitting as the highest provincial appellate court reviewing a decision from a chambers judge. Key legislation at play includes Alberta's *Powers of Attorney Act*, specifically section 10(4), which grants courts extensive powers in applications concerning the actions of an attorney. The case also touches upon fundamental principles of estate law, including the fiduciary duties owed by personal representatives, the requirements for proper accounting, and the procedures for challenging the validity of a will. The key parties involved were the deceased mother, the appellant daughter (who served as personal representative and attorney) and her husband (alternate personal representative), and the respondent daughter who initiated the legal challenge. The specific citation for this appellate decision is *Silva Estate (Re), 2026 ABCA 325*, which will serve as a precedent for similar disputes concerning fiduciary accountability and estate administration in Alberta.

For practising attorneys and legal professionals, several key takeaways emerge from this decision. Firstly, it is imperative to advise clients acting as personal representatives or attorneys under powers of attorney on the absolute necessity of meticulous record-keeping and strict adherence to their fiduciary obligations. Any failure to account for funds can lead to severe consequences, including removal from their role and personal repayment orders. Secondly, litigators should be aware of the broad remedial powers available to the courts under the *Powers of Attorney Act* when pursuing restitution for improperly managed assets. Thirdly, practitioners involved in estate litigation must recognize the procedural hierarchy: issues of will validity generally take precedence, and courts may be reluctant to make final determinations on inheritance distribution or offsets until such foundational matters are settled. Finally, estate planners should counsel clients on the potential for family disputes and the importance of clear, unambiguous testamentary documents to minimize challenges and ensure the smooth administration of an estate.